I have to wonder just how long we will continue to allow this government to maintain its Social Ruse on the People?

The subject is Income Tax, Social Security and Medicare Tax and it’s usage. We are told that it is to provide the government with much needed revenue to operate and keep our nation strong and safe, to provide the needed services and benefits.

It is a very useful tool in the hands of politicians and bureaucrats, but its purpose is not that which is publicized or promoted.

You see, these taxes form a very powerful system of social compliance, but little else. It all starts with the monetary system that has been imposed upon this country: The Federal Reserve Bank and its Fiat Currency System.

In reality, what the banks do with mortgages and loans is very similar to what the government does. Banks lend you and I money that doesn’t exist until the moment you sign the mortgage or loan note.

In the Federal Reserve publication "I Bet You Thought" states: "Printed Federal Reserve Notes that sit in the Treasury's vault do not become money until they are released into circulation in exchange for checkbook money that was CREATED BY A BANK LOAN. As long as the bills are in the vault with no debt-based money to replace them, they technically are just paper, not money."

Debt and Circulation are equal...someone has to borrow every single Federal Reserve Note for it to enter circulation. As I said before, the bank doesn't have the money they lend you sitting in a vault somewhere waiting for a person to take out a loan, it comes into existence the moment that person signs the Mortgage.

In other words, in a very basic sense, you didn't borrow anything from the bank, but you are going to spend the next 30 years paying them back something they never really had to lend you in the first place and on top of it they charge you Interest for using the money that didn't exist and they didn't have until you signed the Mortgage.

When you scour off all the pretense of banking...all they do is pretend to lend us money and charge us for the pretense. The government does basically the same thing when borrowing money from the Federal Reserve. The only difference is that the government is well aware of the scam while so many people taking out mortgages are not.

The Federal Reserve provides an unlimited supply of money to the government in the very same process, creating money out of thin air and then on top of it they charge the government interest. Unfortunately, the debt is never paid, can never be paid off due to the multiplication of debt in an endless cycle of Fiat Circulation.

In fact, think of a Trillion Dollars in this way: If you started borrowing 1 Million Dollars in the Year 1 A.D., and borrowed a Million Dollars each day, 365 days a year, every year, year after year, you would finally have borrowed just One Trillion Dollars in the year 2037. Now imagine what this government has borrowed.

My point is that the money the government borrowed will never, can never be paid back because the system simply doesn't allow it to be paid back. Only periodic interest and principle payments are made. Of course, the owners of the Central Banking System loves that fact.

In such a system, the amount in circulation is exactly the same as the debt; one does not exist without the other. Every single dollar in circulation was borrowed, either by the government or by business or an individual.

Every time a portion of the periodic principle and interest of the debt is paid by the government, it must turn around and borrow that same amount from the Federal Reserve, usually more because the government is the government and since it is no longer limited by an Honest Weight and Measure of Constitutional Money (i.e. gold and silver), it grows uninhibited.

Now, what about those taxes? The whole purpose of taxation has nothing what so ever to do with the creation of revenue for government operations or programs. Its primary purpose is to force you and I to use Fiat Currency pumped out by the Federal Reserve Bank.

It was a strange coincidence, don’t you think, that the Federal Reserve Act and the introduction of the modern Income Tax were introduced around the same time, then you add the passage of the 17th Amendment to the mix and you have a witches brew of socio-economic tyranny. Speaking of the 17th Amendment, it was used to eliminate the potency of the States and to bring the Senators into the national political market, where they are easily bought and paid for, and taking them out of the hands of the State Legislatures. So, now instead of having a House of Representatives representing the People's Rights, and Senators representing the State's Rights in Congress, you have a system which can easily be manipulated by the federal political machine's money and corruption.

So, underneath all the pretenses used by the government, we were forced into a system, which would eventually use Fiat Currency and institute a Progressive Income Tax to support its acceptance.

In the Federal Reserve’s own publications you will find the following:

"In the United States neither paper currency nor deposits have value as commodities. Intrinsically, a dollar bill is just a piece of paper. Deposits are merely bood entries. Coins do have some intrinsic value as metal, but generally far less than their face amount. What, then makes these instruments: checks, paper money, and coins acceptable at face value in payment of all debts and for other monetary uses? Mainly, it is the confidence people have that they will be able to exchange such money for other financial assets and services whenever they choose to do so. THIS IS PARTLY A MATTER OF LAW; CURRENCY HAS BEEN DESIGNATED "LEGAL TENDER" BY THE GOVERNMENT, THAT IS, IT MUST BE ACCEPTED."

"Modern monetary systems have a fiat base, LITERALLY MONEY BY DECREE with depository institutions, acting as fiduciaries, creating obligations against themselves with the fiat base acting in part as RESERVES. The DECREE appears on the currency notes: "This note is legal tender for all debts, public and private." WHILE NO INDIVIDUAL COULD REFUSE TO ACCEPT SUCH MONEY FOR DEBT PAYMENT, EXCHANGE CONTRACTS COULD EASILY BE COMPOSED TO THWART ITS USE IN EVERYDAY COMMERCE. HOWEVER, A FORCEFUL EXPLANATION AS TO WHY MONEY IS ACCEPTED IS THAT THE FEDERAL GOVERNMENT REQUIRES IT AS PAYMENT FOR TAX LIABILITIES. Anticipation of the need to clear this debt creates a demand for the pure fiat dollar."

Now why does the government enforce the payment of Income Taxes, simple to maintain the system of Fiat Currency, but that is not the only reason? Another, more insidious reason is found in the writings of another Federal Reserve Chairman named Breadsley Ruml in 1946. He state, in no uncertain terms the reason behind the Progressive Income Tax:

“The necessity for a government to tax in order to maintain both its independence and its solvency is true for state and local governments, but it is not true for a national government. Two changes of the greatest consequence have occurred in the last twenty-five years, which have substantially altered the position of the national state with respect to the financing of its current requirements. The first of these changes is the gaining of vast new experience in the management of central banks. The second change is the elimination, for domestic purposes, of the convertibility of the currency into gold.”

“Final freedom from the domestic money market exists for every sovereign national state where there exists an institution which functions in the manner of a modern central bank, and whose currency is not convertible into gold or into some other commodity.”

“The United States is a NATIONAL STATE, which has a central banking system, the Federal Reserve System, and whose currency, for domestic purposes, is not convertible into any commodity. It follows that our Federal Government has final freedom from the money market in meeting its financial requirements. Accordingly, the inevitable social and economic consequences of any and all taxes have now become the prime consideration in the imposition of taxes. In general, it may be said that since all taxes have consequences of a social and economic character, the government should look to these consequences in formulating its tax policy. All federal taxes must meet the test of public policy and practical effect. The public purpose, which is served, should never be obscured in a tax program under the mask of raising revenue.”

Concerning the use of Taxation for the Distribution of Wealth, Ruml was very clear:

“The second principal purpose of federal taxes is to attain more equality of wealth and of income than would result from economic forces working alone. The taxes, which are effective for this purpose, are the progressive individual income tax, the progressive estate tax, and the gift tax. What these taxes should be depends on public policy with respect to the distribution of wealth and of income. It is important, here, to note that the estate and gift taxes have little or no significance, as tax measures, for stabilizing the value of the dollar. Their purpose is the social purpose of preventing what otherwise would be high concentration of wealth and income at a few points, as a result of investment and reinvestment of income not expended in meeting day-to-day consumption requirements. These taxes should be defended and attacked it terms of their effects on the character of American life, not as revenue measures.”

As you can see, the purposes of the Progressive Income Tax are little more than an instrument of Socio-Economic Construction by the State. The government does not need Tax Revenue in order to function. In the Fiat Currency system the government simply allows the Federal Reserve to “lend” it money, doesn’t matter how much, at least not to the government.

Now, the only problem with the whole system is that there is a nasty side affect by the unlimited printing of Fiat Currency and placing it into circulation: it’s called INFLATION. There comes a time when the pressure of Inflation eats up the wages of the People and the whole economic market begins to suffer, as we have all seen.

So, they take massive amounts on income away from the People in the form of Income Taxes in order to maintain some degree of control over the Inflation they create, which is just another form of taxation. Our tax rate, counting the percentage of Income Tax we pay, plus the massive amount of Inflationary Tax we pay, leaves us with precious little to live on and in fact, it makes the People of the United States one of the heaviest Taxed peoples in history.

Our money is debt; it is created and backed by nothing more than debt. Now since it is nothing but debt, and there is no value to it, why would the government want to decree its usage? Simple, it is a system that controls you and I; it makes each of us compliant to the various laws imposed outside of the framework of the Constitution.

So, what are you and I going to do about it? We have another swing in Congress, once again we have placed the Democrats in office in hopes that they might thwart the abuses of power found in the Bush Administration. We take this action every so many years, flipping the coin to see if the other side is any better then the one we just had in office. We let one Party take their respective turns at the helm of government only to find that neither Party appears to be able to do anything worth while. Both Political Parties have taken their turn at driving this Nation to the place we found ourselves today, do we think this time around will be any different?

We are a Flip-Floppy Nation and guess what, we have been conditioned to be Flip-Floppy, apathetic and compliant. In a very few years, to our horror, we will once again be anxious to flip the political coin over again to see if the other Party has any ideas to come to Our Beleaguered Nation's rescue. The Republican and Democratic Parties have proven their flecklessness and obsolescence.

I've heard a saying that goes something like this: "The govt doesn't collect taxes in order to provide services, it provides services as an excuse to collect taxes"

Hence, when a disaster like Katrina hits, the 'social safety net' which we've been conditioned to believe exists proves a false belief. I think all of our so-called safety nets (soc sec, medi, etc., etc.) will eventually fail. Thats what they were designed to do, right? So that, when they fail, Big Brother will be able to come to the rescue--only at the expense of us giving up a little more freedom, though.

I think the 'Powers-that-be' are more able to effectively control the populace by giving us the false perception that we actually control things through 'democracy'. I remember in '94 when the 'Conservative Revolution' happened, and Rs were gonna abolish the Dept. of Ed, and do away with Big Govt, and this-and-that. Didn't happen, did it? I don't honestly think the recent elections will produce any more a satisfactory result than the one in '94. Sure, folks who classify themselves as Ds, or 'liberals' will be happy, and folks who consider themselves Rs/'conservatives' won't be.

At this point, I feel pretty pessimistic about the whole thing. Nobody cares about monetary policy, or wants to understand banking/credit creation, fiat money VS hard money, nobody wants to believe that our two major parties are almost completely corrupted and owned by these Banksters. People scoff at the idea of a gold and silver backed currency, nowadays, thinking it just another out-moded notion that those old fogies who wrote The Constitution concocted. We're much too modernized to need an archaic thing like a gold/silver standard, aren't we? There are just SOOO many other issues that The Establishment has people fighting over (R vs. D, abortion, environment, evolution, manger scenes, gay rights, rascism, immigration, and on and on...), that there is little interest in taking away this EXTRAORDINARY power (money creation) away from the Banksters. Really, the Banksters couldn't care less what we argue about--as long as they retain this power to enslave us all.

I, as an individual, am preparing myself (economically) as best I can, in hopes of averting financial ruin when our fiat 'Dollar' fails. I am hoping that we aren't completely enslaved, and sometimes think about moving to another country that isn't so high up on the Banksters hit list.

It is just a HORRIBLE feeling to KNOW whats going on, and where this once-great country is headed, and to not be able to get anyone to realize it. We have strayed too far from our Constitutional roots, to ever go back, now. The People have lost their knowledge of Liberty, and value far too many things above freedom to remain freemen.

By 2008 the country will likely be in a deep recession squarely blamed on the Bush administration. This will set the stage for the Democrats to recapture the White House with a strong mandate for change and a supportive legislature. If the "free market" and "laissez-faire" rhetoric of Republicans are discredited, then the big government Democrats could be perceived as the solution. If so, look for a potential President Hillary Clinton and Speaker Nancy Pelosi to summon the ghost of FDR and conjure up another New Deal. Such fiscal activism, especially coming at a time when our nation can ill afford it, will cause the recession to be a whole lot deeper and last a whole lot longer than might otherwise have been the case.

I've read some of your posts (mostly, they've gathered dust, over the months), but wasn't here to partake in some of the discussions. You are a different creature than most on this site, and most others I've been on, and seem more like a professional researcher than a forum inhabitant. If you don't mind me asking, what steps are you taking to safeguard your future?

I'm 32, and have been aware of the truth of our 'System' for about 5 years, though I'd heard (from 'Right-Wing Conspiracy Nuts', of course!) some disturbing things about our banking system from a much earlier age, but wasn't ready to accept the awful truth, at that time. I think the ENORMITY of the horrible truth is too much for most to bear. Who wants to even CONSIDER that all the things they've been told their whole lives about America being the "Land of the free and home of the brave" are all lies? Who wants to believe that Banksters rule us through debt; that The Constitution IS just a piece of GD paper--and HAS been for some time; that We The People DON'T control the govt; that there IS a 'Masterplan' for World Fascist Govt; that MOST (if not all) of the popular movements (that, always, lead to Bigger Govt) of the last 100+ years are bankrolled/supported by Bankers/Corporations; the UN (and other Int'l Orgs) are tools of these Elitists; that Bill Clinton was as big a stooge for these powers as GW Bush is?

It is absolutely AMAZING to me that most people can't/won't understand what FREEDOM truly means, and the role that republican governance plays in safeguarding it. To the American people, freedom equals gaining control of the Nat'l Govt and imposing their will on the losing side. People think pure democracy is a good thing, not realizing that people can, and will, vote themselves into slavery/ruin.

Yes, some of my posts have gathered dust over the last few months…I have been extremely busy.

As far as my preparations, well, for the last 20 years I have been buying small gold and silver coins, preparing a refuge, which is about ___ miles from where I currently live and hiding caches along the way there.

I think that it is just a wise thing to prepare, to have a place in a remote area away from urban areas. My main store is at the refuge and it contains various materials, including trade goods, farm implements, non-hybrid seeds, guns and ammo. I also have my black smith shop there so I can fashion my own implements, tools, knives and axes. It is run totally on electricity generated from a water jet turbine.

My plans are to continue working and turning Federal Reserve Notes into “real wealth” such as food supplies, trade goods like soap, razor blades, etc. If there is a total financial collapse I think we will see the imposition of Martial Law immediately. In that case a car will be a useless form of transportation and I think the alternative method will be by freight trains (if available, if not I think the railways will be a good route to take on foot because of the lack of security forces on the massive lengths of tracks…except of course, through any cities)

I have chosen my refuge because it is remote, but also because it borders an area where few people live and there are plenty of places to survive undetected. The main thing is to be able to slip through all government lines without being captured and that requires a great deal of study.

You will have to be willing to eventually dissolve any friendship, which might pose a threat to you and your family. There will be many people who will sell you the government for a loaf of bread in the days to come.

I do think that the number of real Patriots who take a stand against government oppression might surprise us; we must be willing to loosely associate with them without becoming too familiar to them or to potential collaborators.

Well, there’s a bit of what preparation I have taken…you wanted to know and there ya are.

_________________Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.-Ben Franklin

Like most people I didn' t realize that the Federal Reserve System is just a bunch of private banks that have a monopoly out of printing money out of thin air. It is just a great big huge scam. The government borrows money for wars from somebody that doesn't even have any money. It is just paper. Just an idea. And, this idea has now cost the US citizen over 8 trillion dollars. Money spent on wars and whatever that do not benefit the common people. And, the taxpayers have to pay for all of this, and most likely forever. The whole thing is just a big unstable system; the US currency being the world's reserve currency. Recently I have read that is why a partial reason for the Iraq War; to at least control the oil and keep it priced in US dollars. This helps to support the dollar. Note that Saddam was selling oil in euros. A big no no. And, Venezuela wants or does the same. Are they in trouble or what? And, what about Iran? Pricing in euros too? Also in trouble? But, there were other reasons for the Iraq invasion of course, like the protection of Israel. But, anyway this whole fiat currency thing is really quite scary. It could collapse at anytime if the foreign borrowers decided to not play ball anymore and buy US debt, etc. Inflation is built into the system already just by pumping all of those extra trilions into the world economy. I think the price of gold may have depressed as well over the last while. But, the runup over the last five years indicates a lack of support for the US dollar. It is just paper alfter all. The bankers thrive on this stuff. Lending money that they don't have for wars like Iraq. They get the interest payments. The whole thing is just stupid. I suppose the insiders are already converting their paper into things of value like land, etc. Something tangible that won't go up in smoke when the system collapses. I only read recently that the Federal Reserve was a private system. What a scam. The name itself was named to deceive and it deceived me up until just a couple of weeks ago. thank god for the internet.

_________________My life is full of optimism and I am not going to stop living until I know the answers to all of the important things, like why does love exist.

Yep...Just keep on doing your research and you will find so many things that are absolutely ing. The IMF, The World Bank, The Bank of International Settlements are all sister banks to the Federal Reserve and they are in the process of not only constructing a social order where they are the "lords of the manor" but they are also deliberately transfering wealth away from the American People, weakening our Nation in order to ultimately erase our sovereignty.

_________________Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.-Ben Franklin

By the way....when you find out that the Internal Revenue Service is not a valid government entity, but is directly connected to the Federal Reserve Bank...it will make you want to take up arms.

When you send a check to the IRS for a tax payment, paid to the order of the U.S. Treasury, look on your cancelled check when it comes back to you and see if it was endorsed by the Treasury or not. Unless things have changed over the past few years, it should be endorsed by the Federal Reserve Bank.

_________________Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.-Ben Franklin

Thanks for the reply, Rep. I envy you, I really do! I don't have the means of owning land in a secluded area, and am worried to live so close to a major urban area (60 miles from L.A.). My job keeps me tied to my area, but I do have about a month's worth of emergency food/water, and am adequately armed. I just pray that things don't get so bad that martial law is declared, and that commerce is completely disrupted. I'm more prepared for something like the stagflation of the 70's or even a depression like the 30's than I am for a general breakdown of civil society. I sincerely hope we don't have a currency failure like what occured in post WWI Germany. The people, here, will probably clamor for their own Hitler (or, another 'savior' like FDR), if it does.

Quote:

The name itself was named to deceive and it deceived me up until just a couple of weeks ago.

Congratulations on discovering this truth. To me, there is truly no other issue that matters. I am a little disappointed that the admins here at TVNL have created this little looked at forum (Monetary Systems), where this issue is discussed. Once one fully understands this System, one stops seeing things in terms of D vs. R, or conservative vs. liberal.

[quote="Libertine"]Thanks for the reply, Rep. I envy you, I really do! I don't have the means of owning land in a secluded area, and am worried to live so close to a major urban area (60 miles from L.A.). My job keeps me tied to my area, but I do have about a month's worth of emergency food/water, and am adequately armed. I just pray that things don't get so bad that martial law is declared, and that commerce is completely disrupted. I'm more prepared for something like the stagflation of the 70's or even a depression like the 30's than I am for a general breakdown of civil society. I sincerely hope we don't have a currency failure like what occured in post WWI Germany. The people, here, will probably clamor for their own Hitler (or, another 'savior' like FDR), if it does.[quote]

I can understand your trepidation, with as much preparation as I have made, I still have a foreboding of what the future holds. I also understand your situation, I used to live in Westwood Village and know how hard it would be to escape such a city in a dire need presented itself.

Nevertheless, it seems that at least you are ahead of the game, at least you are aware that there are possibilities which may conflict with your best interest. I would advise you to at least map out an escape route to an isolated area, be wise in the selection of that route however. You want to evade all potential hostile elements...that will be difficult in such a large urban area because of the massive chaos that will ensue upon such a collapse or the imposition of Martial Law or both.

Also, network with people in the area, make friends that share your views, but be very careful not to let yourself be compromised.

Otherwise, I think you have the right ideas...You may want to purchase trade goods, things that you can barter if needed. Also some gold and silver coins may come in handy if you need to "buyoff" some offical to get through check points.

In Liberty,
Republicae

_________________Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.-Ben Franklin

Thanks for the suggestions, R. The idea of having trade goods to barter with had, honestly, never occured to me. You also remind me that I'm not alone in my outlook on things, though I think folks like us represent a small minority in this country. I like the idea of networking, and will pursue those w/like interests. The fact that so many likeable and well-intentioned people on this forum are acting as if a 'sea-change' in American politics has occured because Ds have regained a slim majority in Congress is typical of the thinking in America. I believe that your exceptional posts have also fallen--largely--on deaf ears, here. I want you to know, though, that they have been greatly admired and appreciated by this poster. Through your writings, you've helped spread the idea of Liberty. I pray that some take it to heart.

It makes me wonder where the outrage by the professional economists if any of this is true?

So many of them are pegged into the system so deep that they rarely see the issues. If you recall, Alan Greenspan was a big proponent of the Gold Standard until the big banking cartel of the Federal Reserve got their hooks embedded into his flesh.

In the past few days however, he has hinted that he is returning to his roots and is suggesting that this country revisit the gold standard.

The professional economist of the Austrian School of Economics have been howling for years about the Fiat Currency System and favor a return to Sound Money.

_________________Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote.-Ben Franklin

But, a dictatorship that acts for the citizen. Why not just take control of the country and then phone the bankers up and say:

' We are not going to pay the 8 trillion because we can't. If you don't like it then shove it. We will make you a deal. And, here is the deal......................'

And, then take the country back and set up your own central bank . A bank that is responsible with a responsible system. It doesn't even have to be a system backed by gold. That is not the issue. It can be a system backed by a certain type of rock or even a bunch of pretty girls. Just backed by something to keep everyone happy. Something everyone understands and that everyone can play rules by. Maybe just backed by honesty and a set of rules. Rules that can be enforced somehow. Right now you have a system set up to suck the life out of a nation and that is what has happened. Maybe the gig is up. Maybe the public is starting to become educated when it is not supposed to be.
The idea is to create a system of currency that acts for the benefit of the people and not just a private few. There is nothing wrong with a fiat currency if it is controlled proplerly. With the interests of the public in mind.

_________________My life is full of optimism and I am not going to stop living until I know the answers to all of the important things, like why does love exist.